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GM to cut production at 5 plants in North America, kill several models

DETROIT/WASHINGTON — General Motors Co said on Monday it will cut production of slow-selling models and slash its North American workforce in the face of a stagnant market for traditional gas-powered sedans, shifting more investment to electric and autonomous vehicles. The announcement is the biggest restructuring in North America for the U.S. No. 1 carmaker since its bankruptcy a decade ago. GM said it will take pre-tax charges of $3 billion to $3.8 billion to pay for the cutbacks, but expects the actions to improve annual free cash flow by $6 billion by the end of 2020. GM plans to halt production next year at three assembly plants: Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario. The company also plans to stop building several models now assembled at those plants, including the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse, the sources said. Sources said the Chevrolet Volt, Impala and Cadillac XTS would also be discontinued. Signs of the demise of six passenger-car models have been swirling since July. Plants in Baltimore, Maryland, and Warren, Michigan, that assemble powertrain components have no products assigned to them after 2019 and thus are at risk of closure, the company said. It will also close two factories outside North America, but did not identify those plants. The AP reported that 14,700 jobs would be affected. Some 8,100 of those would be white-collar jobs reduced through buyouts or layoffs. The No. 1 U.S. automaker signaled the latest belt-tightening in late October when it offered buyouts to 50,000 salaried employees in North America. The company also said it will cut executive ranks by 25 per cent to "streamline decision making." Some 6,000 factory workers could lose their jobs or be transferred to other plants. Its shares were last up 6.2 percent at $38.16. Tariff 'headwinds' and cost-cutting GM Chief Executive Officer Mary Barra told reporters on Monday the company can reduce annual capital spending by $1.5 billion and increase investment in electric and autonomous vehicles and connected vehicle technology because it has largely completed investing in new generations of trucks and sport utility vehicles. Some 75 percent of its global sales will come from just five vehicle architectures by early in the 2020s. It plans to reduce annual capital spending to $7 billion by 2020 from an average of $8.5 billion a year during the 2017-2019 period.

Cadillac chief says ATS convertible, wagon on the table

What we do know is that the ATS will wear at least one more bodystyle. That comes from Cadillac head Bob Ferguson, who answered "Absolutely" when Automotive News asked him about the possibility of another variant. What we don't know is what that bodystyle or styles will be.
We now have a sedan and coupe ATS, there's supposedly a V sedan coming. After that, a convertible is a likely option given that the man who just became the global product honcho at General Motors, Mark Reuss, admitted to having one already designed in 2012. The decision on it can't get out of the underworld and a wagon is the other option, but the droptop would seem to make the most sense if one considers the competitive set: the BMW 4 Series and Audi A5 convertibles are hot property and Mercedes is bringing a C-Class convertible. Meanwhile wagons are the sentimental utility vehicles that, refusing to die, seem forever destined for life support... CTS Sport Wagon, anyone?
Based on Ferguson's statements, it appears that what Cadillac definitely won't do is play model variant catch-up with the European luxury brands it has spent years hunting down, telling Automotive News, "We want to keep our focus on a limited number of vehicles and do them very well."

How Cadillac improved power output in 2016 ELR by 25 percent

Earlier this year, Cadillac announced that the 2016 ELR would come with a big price drop and a powertrain that packs 25 percent more power output. That's a lot more oomph, but it didn't sound like the Caddy engineers made any major changes to the engine or motors. So, what happened? Let's refresh our memories with the numeric details. The 2016 car is 1.5 seconds quicker to 60 miles per hour than the 2014 model (there was no 2015), down to 6.4 seconds. The 2014 put out 295 pound-feet of torque. For 2016, it will be 373 lb-ft. The specific breakdown of the various components in the powertrain has not been disclosed, but from what we can tell, the two electric motors and the 1.4-liter inline-four engine in the new ELR are not that much different than those in the old one. Sam Abuelsamid, senior research analyst at Navigant Research (and former writer here at Autoblog) said that any of the unspecified upgrades would be difficult to tell on a part-by-part basis, but the overall effect will be noticeable. "The changes to the ELR as I understand them are analogous to getting more performance out of a 1965 Mustang with the entry version of the 289 cubic-inch V8. You can replace the carburetor with a larger version that enables more air and fuel to flow into the engine, thus producing more power. The basic engine hasn't changed, but power capability is being unleashed by feeding it more." "Cadillac has changed components in the power electronics to enable more current flow into the motor and thus produce more torque. When you do this in the Mustang, you probably need to replace the rear axle gears and use a beefier clutch to transmit the power to the wheels. Similarly, the ELR probably has some upgraded clutches, bearings, and gears to withstand the increased total output." Cadillac spokesperson David Caldwell told AutoblogGreen in an email that the new ELR does indeed have more than just new lines of code. "One could not 'reflash' a previous ELR to get the performance of a 2016," Caldwell said. "If one only changed software you would not get the performance upgrade fully, as the 2016 creates higher current, more power. So these have been upgraded physically – hardware.